business plan by help hospitality services

Building a Business Plan

Create a Business Plan as the first step on your path to success

By Djeumo Eugene Cyrille

HHS Vision: To be the Highest Experience Leading Partner in Hospitality and Tourism Services.

2Hours

Mission: To empower people to improve on customers service and know

how through trainings and Sensitization.

Module 1

Opening

Think of your best movieWhat could it take someone to make such video

Time:

Meeting People

Task:

• In 2 minutes, try to meet as many people as you can by telling:

• Name

• Profession / Business Idea

• Something you do that helps others

Time: 2 minutes

0:300:200:100:050:001:002:001:30

Introductions

Task:

One by one, stand up and introduce one of the persons you just met:

• The other person’s name

• The person’s profession / Business Idea

• Something the person does that can help others

The person introduced continues by introducing another person and so on…

Introductions

• How many people did you meet?

• How many names and professions do you remember?

Some attend seminars for exchange and never make any meaningful contacts and informations!

Introductions

• Who was more concerned with talking instead of listening?

• How can you get more information about the people you meet?

By listening and asking questions

Planning our Business

• What do you think when you hear the word Business Plan?

• What is your experience with Business Planning?

• What kind of Business Plan do you have today?

Power House

• Life is too short to work in an undesired environment.

• I rather prefer to be a slave to my customers than to my boss.

• At the end of my carrier. I don’t want to blame myself for failing to start my personal Business.

Learning Objectives

At the end of this module, you will be able to:

• Identify the essential elements of a Business Plan.

• Identify how a good Business Plan can create an anchor for continued success.

• List additional resources that can help you develop an effective Business Plan.

Building a Business Plan 9

Certification

Register

Participate

Complete evaluation and pass the

knowledge test.

Course material can be

purchase at 500frs after test.

Course Program

Module 1: Opening – Introduces the topic and explains course details

Module 2: Concept – What is and how does a Business Plan work

Module 3: Structure – How to establish and strengthen Business Plan

Break

Module 4: Exercise – How to add value and turn Plans into a Business

Module 5: Business in Cameroon– How to use your ideas to establish a business plan for the future

Business Proposal

Let’s say you have a business and someone comes up with this proposal for partnership:

- Why would you accept such partnership?

• Wants to be a partner

• Will not bring in any money

• Will not work at the business

• Wants part of the profits

Business Proposal

If the person brings in a Plan!

Module 2

Concept

Let us talk about Your Business Ideas

Task: What Business do you have:

Have you started Yes / No? __

Do you have a plan Yes / N0 ? __

Do you have a market Yes / N0 ? __

Do you love your family Yes / N0? __

Do you belong to an Association Yes /N0 ? __

Do you see yourself self-employed in 2yrs Yes /N0 ? __

Time: 0:300:200:100:050:001:00

Share your Opinion

Task: What could be your advantage (1-5) and disadvantage(6-10) to be self employed before the next 2yrs

1. ______________

2. ______________

3. ______________

4. ______________

5. ______________

6. ______________

7. ______________

8. ______________

9. ______________

10. ______________

Who Can Help you and Why?

• Who in your family can give you money to start your business?

• When and How will you pay back?

• Who will like to buy and consumed your product?

• Why will your relative work for you?

• Why Should partners Put their reputation at risk by referring you to a client?

Who Can you Help and Why?

• Who in your family can benefit your money to start his business?

• When and How will he/she pay back?

• Why will you like to buy and consumed his/her product?

• Why should you work for your relative ?

• Why Should you Put your reputation at risk by referring them to a client?

Business Plan is Not a Book, it is a Statement

Business Plan is a guide on generating income!

Business Plan is about attracting investors, keeping on track.

It is not about assuming or imitating related businesses.

What then is a Business Plan?

• A Business Plan is a written document that defines the goals of your business and describes how you will attain those goals.

• It is worth your considerable investment of time, effort, and energy.

• It sets objectives, defines budgets, engages partners, and anticipates problems before they occur.


10 Reasons Why You Need a Strong Business Plan

• To attract investors.

• To see if your business ideas will work.

• To outline each area of the business.

• To set up milestones.

• To learn about the market.

• To secure additional funding or loans.

• To determine your financial needs.

• To attract top-level people.

• To monitor your business.

• To devise contingency plans.


How Detailed Should Your Plan Be?

• Business plans differ widely in their length, appearance, content, and the emphasis placed on different aspects of the business.

• Depending on your business and your intended use, you may need a very different type of Business Plan:

• Mini-plan:

• Working Plan:

• Presentation Plan:


Module 3

Structure

Assembling a Business Plan

Every Business Plan should include some essential components:

• Overview of the Business:

• The Marketing Plan:

• The Financial Management Plan:

• The Operations and Management Plan:


Seven Common Parts of a Good Business Plan

• Business plans must help investors understand and gain confidence on how you will meet your customers’ needs.

• Seven common parts of a good Business Plan are:

1.Executive Summary

2.Business Concept

3.Market Analysis

4.Management Team

5.Marketing Plan

6.Financial Plan

7.Operations and Management Plan


Part 1: Executive Summary

• The Executive Summary of a Business Plan is a 3-5 page introduction to your Business Plan.

• The Executive Summary is critical, because many individuals (including venture capitalists) only read the summary.

• The Executive Summary section includes: A first paragraph that introduces your business.

• Your business name and location.• A brief explanation of customer needs and your products or

services.• The ways that the product or service meets or exceeds the

customer needs.• An introduction of the team that will execute the Business Plan.


Part 2: Business Concept

• The business concept shows evidence that a product or service is viable and capable of fulfilling an organization's particular needs.

• The Business Concept section: • Articulates the vision of the company, how you plan to

meet the unique needs of your customer, and how you plan to make money doing that.

• Discusses feasibility studies that you have conducted for your products.

• Discusses diagnostics sessions you had with prospective customers for your services.

• Captures and highlights the value proposition in your product or service offerings.


Part 3: Market Analysis• A Market Analysis defines the target market so

that you can position your business to get its share of sales.

• A Market Analysis section:

• Defines your market.

• Segments your customers.

• Projects your market share.

• Positions your products and services.

• Discusses pricing and promotions.

• Identifies communication, sales, and distribution channels.


Part 4: Management Team

The Management Team section outlines:

• Organizational Structure:

• Management Team:.

• Working Structure:

• Expertise:

• Skills Gap:

• Personnel Plan:


Part 5: Marketing Plan

The Marketing Plan section details what you propose to accomplish, and is critical in obtaining funding to pursue new initiatives.

The Marketing Plan section:

• Explains (from an internal perspective) the impacts and results of past marketing decisions.

• Explains the external market in which the business is competing.

• Sets goals to direct future marketing efforts.

• Sets clear, realistic, and measurable targets.

• Includes deadlines for meeting those targets.

• Provides a budget for all marketing activities.

• Specifies accountability and measures for all activities.


Part 6: Financial Plan (Slide 1 of 2)

• The Financial Plan translates your company's goals into specific financial targets.

• The Financial Plan section:

• Clearly defines what a successful outcome entails.

• Provides you with a vital feedback-and-control tool

• Anticipate problems.


Part 6: Financial Plan (Slide 2 of 2)

• The Financial Plan is the most essential part of your Business Plan. It shows investors the timeframes you have scheduled to make profits.

• Some elements of the Financial Plan include:• Important Assumptions

• Key Financial Indicators

• Break-even Analysis

• Projected Profit and Loss

• Projected Cash Flow

• Projected Balance Sheet

• Business Ratios

• Long-term Plan


Short-term Forecast: Projects either the

current year or a rolling 12-month period by

month. This type of forecast should be

updated at least monthly and become the

main planning and monitoring vehicle.

Budget: Translates goals into detailed

actions and interim targets. A budget should

provide details, such as specific staffing

plans and line-item expenditures.

Different Financial Planning Options (Slide 1 of 2)


Strategic Forecast: Incorporates the strategic goals

of the company into the projections. For startup

companies, the initial Business Plan should include a

month-by-month projection for the first year, followed

by annual projections for a minimum of three years.

Cash Forecast: Breaks down the budget and 12-

month forecast into more detail. The focus of these

forecasts is on cash flow, rather than accounting profit,

and periods may be as short as a week in order to

capture fluctuations.

Different Financial Planning Options (Slide 2 of 2)


Part 7: Operations and Management

• The Operations and Management section outlines how your company will operate.

• The Operations and Management section includes:

• Organizational structure of the company.

• Expense and capital requirements to support the organizational structure.


Key Takeaways From This Module• Business Plans are critical for the success of a company.

• Different businesses will require different types of Business Plans.

• All Business Plans have some essential sections that explain the core aspects of the company.

• In order to help your company have a better chance of gaining interest and investors, a Business Plan should include seven essential sections:

1. Executive Summary

2. Business Concept

3. Market Analysis

4. Management Team

5. Marketing Plan

6. Financial Plan

7. Operations and Management Plan


Module 4

Exercise How to add value and turn Plans into a Business

Three steps to start a business

Three ingredients must be present to start a business:

+ Be creative (combine known things in a new way: an idea)

+ Be innovative (the found idea must be useful for customers)

+ Entrepreneurship (carry out the useful idea in real life, action!)

= Start of a new innovative business

A business plan helps you describe the new business

Business plan- items you must know about:

Download business plan template: www.dynamicbusinessplan.com/downloads

Personal resources

• Your family network

• Economy

• Education in the field

• Know-how about the product/the services

• My weak points in relation to the business

• My working tasks in the business

• Future prospects for business size

Product or service

• Products/lines/service – 1 - 2- 3

• Differences compared to your competitors

• Purchase frequency/product life span

• Calculation of product/service

• Price of product

• Purchase price

• Name of contractors

• Kind of distribution of the product

• Other businesses in this trade

Market – who will buy?

• The typical private customer

• The typical business customer

• Geographical limits

• Realistic number of customers

• Average consumption in cash per customer

• Important competitors

• Competitive parameters on the market

• Possibilities on the market for your business

• Threats that may destroy the possibilities

Sales and Marketing

• Direct mail

• Internet

• Customer visit

• Telephone sale

• Advertising

• Publications

• Signposting

• Presentation material

• Trade Fair

• Public Relation (PR)

• Opening market activity

Management and Organisation

• Name of business/address/phone no/

• Legal status of business

• Owners

• Bank

• Accountant

• Business policies

• Accountancy and administrative routines

• Write letters

• Telephone reception

• Insurance subscriptions

• Business partners /consultants

Business Development

• Business appearance in three years?

• The product or service in three years?

• Customers in one and in three years?

• Financial forecast for year three?

• Other goals with your business?

Budgets and Financing

• Establishing budget

• Operating budget

• Cash Flow budget

• Financing+ Necessary establishing capital

+ Necessary liquidity

= Total funding needs

Annual accounts - profit & loss

Turnover/sale

- Used goods /variable costs

= Gross profit

- Fixed costs

- Interest

- Depreciation

= profit = your salary

• Personal tax is paid on the basis of the company´s profit

• Accounts and budgets are always without VAT/sales tax

Profit & loss statement- Accounts for a small building company, 2014

Turnover/sale 442.000

- Use of goods 145.860

= Gross profit 296.140

- Fixed costs 97.116

- Interest 0

= Profit = Your salary 199.166

www.DynamicBusinessPlan.com- core business plan knowledge

First work task: Decide your business idea

Task:

• Decide which kind of business you will start ?

• Describe the business in four lines and hand it over to the

lecture at

the first meeting

Inputs:

• Build on your own experience - business as leisure

• Build on what you find interesting, fun or challenging

• You could assume you have specific education or contacts

Presentation of business plan

The following must be included:

• What does the company sell?

• Which and how many customers?

• How to come in contact with the customers?

• Turn over year one?

• Profit year one?

Need for financing?

Go to:

• www.DynamicBusinessPlan.com

Here you will find:

• Template for a Business plan - word

• Establishing budget - excel

• Operating budget – excel

• Online business plan information

•

How to use your ideas to establish a business plan for the future

Module 5:

Business Plan in Cameroon

Case Study – Oxford Restaurant

OXFORD RESTAURANT

Table of Content

1.0 Executive Summary (1 by 2)

• What's Oxford? Oxford is an exciting, new business with a unique approach to helping people enjoy home cooked meals with their families.

• We are located in Ub junction, Molyko - Buea, a booming, and rapidly expanding, borough of Buea, University Junction.

• The menu will be inspired from different countries' specialties and appeal to a diverse clientele.

• The Oxford restaurant will be open seven days a week.

• The mission is not only to have great tasting food, but have efficient and friendly service because customer satisfaction is paramount.

• Oxford Restaurant's objective for the first three years of operation includes:

• Keeping food cost fewer than 35% revenue.

• Keeping employee labor cost between 24-29% of revenue.

• Keys to Success: The restaurant will stand out from the other restaurants in the area because of the unique design and decor.

• Company Summary : Oxford’s & Restaurant will feature an outstanding New African menu with a touch of Asian influence in an upscale and cozy atmosphere.

• Company Ownership : The restaurant will start out as a Sarl, owned by its founders HRH P. TenengSikod. HRH P. Teneng Sikod will function as the CEO and Djeumo Eugene as managing partner.

Business Concept / Company Summary

Start-up Summary : Comfort works in the kitchen and while

Cyrille manages personnel and focuses on the financial

issues. We have a restaurant space approximately 200 - 250

sq. ft. in Ub junction,Molyko- Buea. Oxford's is already

operation, not producing at it optimum capacity.

• We will 'go all the way' to satisfy our guests. We will change our menu every 3-4 months, but we'll keep 'your favorite.' Portions will be modestly sized with an attractive presentation.

• 3.1 Pricing and Profitability : We anticipate our total sales allocation to be 85% restaurant sales and 15% catering sales. The combined cost of sales will be 33% producing a gross profit of 67% on total sales.

• Oxford's focuses on local and tourist restaurant seekers. People that have a desire for good food and a fascinating atmosphere.

3.0 Services / Market Analysis

Oxford Restaurant will focus on attracting a wide and diverse clientele ages 25-60 with an annual income of at least 150,000.frs

5.0 Management team• Djeumo Eugene will manage Oxford's Restaurant.

Comfort Nyaah will also function as head chef. Djeumo Eugene will take care of all financial issues including bookkeeping.

6.0 Marketing Plan• Oxford's Lounge & Restaurant and 'Leave it to help

Catering' will have a combined website.

• It will be the virtual business card and portfolio for the company, simple, classy and well designed. Our site will offer our menus, prices, reviews and happenings at Help's.

• We will also have a monthly newsletter about what did happen at Help's to get new customers interested in our restaurant.

• You will also be able to send us an E-mail when you want to make reservations at our restaurant or to book 'Leave it to oxford Catering.' Fast, easy and convenient!

6.0 Financial Plan• 1,000,000 of funding is needed over the next

year for renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies, legal fees, working capital, marketing and personnel.

• Break-even Analysis : For our Break-Even Analysis, we assume running costs include our full payroll, rent, and utilities, and an estimation of other running costs.

7.0 Operation and Management

• Competitive Edge , PEST ANALYSIS

• Main Competitors

• Marketing Strategy

• Marketing Program , word of mouth, exhibition etc

• Sales Strategies, forcast, Minestones etc

Sources and Citations

• Small Business Administration, Business Planning, How To Prepare a Business Plan : Gary Cadenhead, No Longer Moot

• Shirleen Glasin, ProSidian Consulting, Building a Business Plan

• Entrepreneur.com, Small Business Encyclopedia, Business Plans

• AllBusiness, A D&B Company, 10 Reasons Why You Need a Strong Business Plan

• Business Owners Toolkit, Total Know-How for Small Businesses


Exit Plan

• No one attempts a business anticipating failure, however sometimes ventures do not fulfill their promise.

• We at Help's are committed to our concept and its viability. In the event that our venture cannot achieve profitability and retire the encumbrances; we will first attempt to sell the operation and use the proceeds to clear all outstanding balances.

Thank You!

Let’s plan our Business!

IF WE CANNOT FORCE THE POLITICIAN

TO CHANGE, WE MUST INSPIRE THE

CITIZENS TO BE BOLD. Pst. Eva Mawarire

Contact: +237 [email protected]